Toyota Tsusho in $66 mln Indonesian flour investment

From: Reuters

Oct 7 (Reuters) - Toyota Tsusho Corp , Malayan Flour Mills Berhad and Indonesia's FKS Capital have agreed to invest $66 million to establish a flour mill company in Indonesia, the trading house affiliated with Toyota Motor Corp said on its website.

Commercial mill operations are expected to start in 2013 at the Jakarta site, with flour output forecast at 1,500 tonnes per day, Toyota Tsusho Corp said in a statement.

Indonesia's wheat imports are expected to rise to around 6 million tonnes in 2011 from 5.5 million tonnes last year, due to higher incomes and rising fast-food demand.

This will make the archipelago of 17,000 islands Asia's top wheat importer.

Indonesia relies entirely on imports for its wheat, with around 60 percent of supplies coming from Australia. Canada and the United States account for about 30 percent.

Southeast Asia's biggest economy imported 775,000 tonnes of wheat flour in 2010 from 645,000 tonnes the year before, with about 60 percent

REUTERS/Toyota Tsusho in $66 mln Indonesian flour investment